The NCAA and a coalition of states led by Tennessee reached a settlement in their lawsuit against the NCAA, Tennessee Attorney General Jonathan Skrmetti announced Friday.
The settlement is a deal in principle that will protect student-athletes’ name, image and likeness rights during the recruiting process and prohibit the NCAA from bringing back its NIL recruiting ban, Skrmetti said.
“We’ve been fighting hard to protect Tennessee student-athletes,” Skrmetti said in a statement. “Last year, we blocked the NCAA’s unlawful enforcement against Tennessee students and schools, and now this settlement in principle lays the groundwork for a permanent solution.”
This conclusion seemed inevitable.
On Feb. 23, a federal judge granted a preliminary injunction in the case, which suspended the NCAA’s NIL rules and indicated that the NCAA likely would lose the case.
It also emphasized the need for reform in how college athletes are lawfully paid. Since then, prospective and current college athletes have enjoyed latitude in negotiating and signing NIL deals with little fear of NCAA penalties.
Another federal antitrust lawsuit, House vs. NCAA, could bring some stability to the situation when revenue sharing arrives in college sports as early as July. Universities will be allowed to pay athletes directly, up to $21 million for athletes in all sports per year, from its revenue coffers.
But NIL will still exist, although any regulations around it are still up for debate.
Here’s how Tennessee vs. NCAA suit reached this point
This case shook the college sports world in early 2024, beginning with an NCAA investigation into UT athletics over allegations of breaking NIL rules and seemingly ending with the NCAA’s pause of those NIL rules.
On Jan. 31, 2024, Skrmetti sued the NCAA to loosen its stranglehold over NIL. That led to a showdown in a federal courthouse in Greeneville, Tennessee, two weeks later.
A federal judge granted a preliminary injunction, which suspended NCAA rules on NIL benefits for athletes. And on March 1, the NCAA paused all investigations related to NIL, including its probe into UT.
Since then, the case had almost disappeared from public view, especially after the NCAA retreated. But the fight had quietly prolonged for months through a series of court filings to reframe the argument.
Other states joined the suit alongside Tennessee and Virginia, the initial plaintiffs, and the NCAA never gained significant ground. The case seemingly ended on Friday.
But the debate over paying college athletes is far from over.
Adam Sparks is the Tennessee football beat reporter. Emailadam.sparks@knoxnews.com. X, formerly known as Twitter@AdamSparks. Support strong local journalism by subscribing at knoxnews.com/subscribe.
